News Summary
Kimberly-Clark has announced a joint venture with Suzano valued at $3.4 billion, focusing on the international tissue market. The partnership allows Kimberly-Clark to maintain a 49% stake while Suzano holds 51%. With operations in 14 countries and 22 manufacturing facilities, the venture aims to leverage both companies’ strengths. This strategic move will enable Kimberly-Clark to focus on growth areas while incorporating over 40 regional brands into the new entity. The deal is expected to close in mid-2026, pending approvals.
Big Changes in the Texas Business Scene: Kimberly-Clark Teams Up with Suzano
Texas is witnessing a significant shift in the tissue industry with Kimberly-Clark Corporation announcing a joint venture with Brazilian company Suzano, valued at $3.4 billion. This strategic partnership aims to create a formidable presence in the international tissue market, combining resources to enhance production and distribution of tissue products globally.
What’s the Deal?
In this joint venture, Kimberly-Clark will retain a 49% ownership stake while Suzano will hold 51%, investing $1.734 billion in cash to facilitate the partnership. The primary objective of this collaboration is to position both companies as key players in the international tissue and professional products market.
The Backbone of the Operation
The new organization will be headquartered in the Netherlands and will comprise a network of 22 manufacturing facilities spread across 14 countries, including regions in Europe, Asia, the Middle East, South America, Africa, and Oceania. Approximately 9,000 employees will be involved in this venture, which is set to have an impressive annual production capacity of about 1 million tonnes.
Bringing in the Bucks
The assets included in this joint venture have shown strong performance, generating net sales of approximately $3.3 billion in 2024. Kimberly-Clark will continue to operate its consumer tissue and professional divisions in the United States, alongside maintaining interests in joint ventures located in Mexico, South Korea, and Bahrain.
Brand Powerhouse
This joint undertaking will feature over 40 regional brands from Kimberly-Clark’s portfolio, including notable names such as Scott, Kleenex, Cottonelle, WypAll, and Kimberly-Clark Professional. This approach is anticipated to leverage customer familiarity with these well-known brands while expanding their market reach internationally.
Focus on Future Growth
The decision to form this joint venture allows Kimberly-Clark to concentrate on its higher growth segments, particularly in North America and personal care markets. This is expected to sharpen the company’s strategic focus and maximize profitability in its core business areas.
Looking Ahead
The establishment of the joint venture is projected to close around mid-2026, pending regulatory approvals and other customary conditions. This initiative aligns with Kimberly-Clark’s vision for transformation and represents a shift in Suzano’s involvement in fiber production and supply chain efficiency improvement on a global scale.
Shared Governance
The management structure of the joint venture will consist of a board of five members, with Suzano appointing three and Kimberly-Clark appointing two. Additionally, Suzano will have the option to acquire Kimberly-Clark’s remaining 49% stake in the venture under specific conditions, which could influence future operations and ownership structures.
As this partnership develops, significant changes are anticipated in the tissue market landscape, with Texas playing a crucial role in the evolution of Kimberly-Clark and Suzano’s operations. Stakeholders and industry observers will be closely watching how this strategic collaboration unfolds in the coming years.
Deeper Dive: News & Info About This Topic
- Business Wire: Suzano and Kimberly-Clark Announce a Global Tissue Company
- Reuters: Kimberly-Clark to Sell International Tissue Business
- Investopedia: Kimberly-Clark to Sell Majority of Global Tissue Business
- CNBC: Kimberly-Clark to Sell International Tissue Business
- PR Newswire: Kimberly-Clark Announces Major Step Forward
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
